Federal Cabinet Greenlights Resumption of Gas Connections on RLNG Prices
Federal Cabinet Greenlights Resumption of Gas Connections on RLNG Prices. The long wait for domestic gas connections in Pakistan is finally coming to an end. After more than three years, the federal cabinet has approved the resumption of new gas connections. However, there’s a twist these connections will now be provided at RLNG (Regasified Liquefied Natural Gas) prices instead of the previously subsidized natural gas rates.
This decision, taken by the Petroleum Division and endorsed by the federal cabinet, is set to impact millions of pending applications across the country. In this article, I (Nadeem Blogger, finance writer with two years of expertise) will explain the new fee structure, consumer costs, rules, and what this shift means for households in 2025.
Why the Shift to RLNG Prices?
Gas Crisis and Resource Management
- Pakistan faces a severe gas shortage due to depleting local reserves.
- Importing RLNG has become the only viable option to meet domestic demand.
- The move ensures that new connections do not add to the burden of subsidized gas.
Government’s Official Stance
According to Petroleum Division officials, only RLNG will be supplied to new domestic consumers. This means:
- No subsidized natural gas for new connections.
- Households will pay higher rates aligned with imported LNG prices.
- The measure aims to balance supply, demand, and fiscal sustainability.
Pending Applications – Millions Waiting
Currently, millions of households have been waiting since 2017 for gas connections. The numbers highlight the demand:
| Category | Applicants | Fee Paid (Old System) |
|---|---|---|
| Total Applications | 3.5 million+ | — |
| Demand Notice Applicants | 2.5 million | Rs 3,000 – Rs 10,000 |
| Urgent Connection Applicants | 4,000 | Rs 25,000 |
These applications will now be processed under the new RLNG-based fee structure.
New Fee Structure for Domestic Gas Connections
The Petroleum Division has introduced a revised fee system:
| Connection Type | Fee (2025) |
|---|---|
| Normal Connection (Demand Notice) | Rs 18,000 |
| Urgent Connection | Rs 80,000 |
⚡ Key Difference:
The fees are much higher than before due to RLNG import costs and infrastructure expansion.
Additional Charges for Different House Sizes
Households will face varied charges based on their property size:
| House Size | Connection Cost |
|---|---|
| 5 – 10 Marla Houses | Approx. Rs 40,000 |
| Above 10 Marla | Demand Notice: Rs 23,000 + Security Fee: Rs 20,000 |
💡 Note: Even old applicants will have to pay additional charges as per new rates.
New Rules & Regulations
The federal cabinet has laid down strict guidelines:
- Full Advance Payment Required: Only those who pay in advance will get connections.
- No Annual Quota: The previous limit of 100,000 connections per year is abolished.
- Availability-Based Approval: Connections depend on gas availability and meter supply.
- First-Come, First-Served Basis: Priority for those who have already applied.
Timeline for Implementation
- The resumption will start in the next financial year (2025–26).
- After official approval, Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company (SSGC) will notify consumers.
- Both old and new applicants will receive instructions to complete payments.
Impact on Consumers
Advantages
- Relief for millions of households waiting since 2017.
- Formalization of process with clear rules and fee structures.
- Better planning for energy management in Pakistan.
Challenges
- High connection costs compared to previous years.
- RLNG is expensive, leading to higher monthly gas bills.
- Households in rural areas may still face delays due to infrastructure gaps.
Comparison: Subsidized Gas vs RLNG
| Factor | Subsidized Gas (Old System) | RLNG (New System) |
|---|---|---|
| Price per MMBtu | Lower, government-subsidized | Higher, import-based |
| Consumer Burden | Light | Heavy |
| Availability | Limited, quota-based | Demand-driven, infrastructure-limited |
| Connection Fees | Rs 3,000 – Rs 25,000 | Rs 18,000 – Rs 80,000+ |
Expert Opinion
Energy experts suggest that while the decision is tough, it was necessary:
- Subsidized gas was unsustainable given Pakistan’s fiscal deficit.
- RLNG-based connections will ensure continuous supply without draining national resources.
- The government may consider targeted subsidies for low-income households in the future.
FAQs
1. When will new gas connections start in Pakistan?
New connections will begin from the next financial year (2025–26) after cabinet approval.
2. Will old applicants have to pay again?
Yes. Even applicants from 2017 will need to pay additional fees as per the new structure.
3. What is the cost of a normal connection in 2025?
The demand notice fee is Rs 18,000, while urgent connections cost Rs 80,000.
4. Why are connections now on RLNG prices?
Due to the natural gas shortage, only imported RLNG can meet demand. This ensures sustainability.
5. How many applications are pending?
More than 3.5 million applications are pending, with 2.5 million already having paid old fees.
Conclusion
The federal cabinet’s approval of new domestic gas connections on RLNG prices is a landmark decision in Pakistan’s energy sector. While it brings relief to millions of households, it also introduces higher costs for consumers.
